Digital Banking in Portugal in 2025: Everything You Need to Know

Portugal has emerged as one of Europes most digitally progressive countries, and its banking sector reflects this transformation. Whether youre an expat planning a move to Lisbon, a digital nomad considering Portugal as your base, or a mid-market company expanding your European operations, understanding how digital banking works in Portugal can save you significant time and compliance headaches.

The short answer is yes, you absolutely can use digital banking in Portugal for most of your financial needs. But the nuances matter, especially if youre running payroll for a growing team or navigating the regulatory requirements that come with hiring across Europe. This guide walks you through everything from daily payments to corporate banking strategies, helping you make informed decisions that wont need unwinding six months down the line.

Key Takeaways

• Everyday usability: Digital banking works seamlessly for daily life in Portugal, from contactless payments to rent transfers, with widespread acceptance of mobile wallets and international digital banks.
• For expats and foreigners: Opening accounts is straightforward, though having a Portuguese tax number (NIF) can simplify the process for utilities, taxes, and some landlords.
• For scaling companies: Mid-market businesses can often rely on digital banking for payroll and expenses, but entity establishment and regulatory compliance may require traditional Portuguese business accounts.
• European context: Portugal's position in the Single Euro Payments Area (SEPA) means banking choices affect cross-border operations across Europe, particularly for companies managing multi-country hiring strategies.

Can You Use Digital Banking in Portugal for Everyday Payments

Yes, digital banking works exceptionally well for everyday payments in Portugal. The country has embraced digital payment infrastructure more rapidly than many of its European neighbors, making it surprisingly easy to run your financial life through banking apps and digital platforms.with online banking penetration reaching 64% in 2024, making it surprisingly easy to run your financial life through banking apps and digital platforms.

Digital banking in Portugal encompasses everything from mobile apps provided by traditional Portuguese banks to international digital-only providers like Revolut, N26, and Wise. You can manage accounts, make transfers, pay bills, and handle most financial tasks without ever visiting a physical branch.

For daily life, you'll find digital banking covers these essential use cases:

The key advantage is Portugal's integration with MB Way, the country's popular mobile payment systemThe key advantage is Portugal's integration with MB Way, the country's popular mobile payment system with over 6 million users. Most digital banks that operate in Portugal can connect to MB Way, giving you access to instant transfers between Portuguese users and QR code payments at local merchants.

"I've been living in Lisbon for two years using only Revolut and a German N26 account," explains Sarah, a remote marketing manager. "The only time I needed a Portuguese bank was when my landlord insisted on direct debit for utilities, but even that was sorted within a week."

Mobile Banking in Portugal and How Widely It Is Accepted

Mobile banking in Portugal operates on two levels: the banking apps themselves and the mobile payment acceptance infrastructure. Both are remarkably well-developed, making Portugal one of the more mobile-friendly banking environments in Europe.

Portuguese banks and international digital providers typically offer mobile apps with English language options, covering standard functions like:

The acceptance infrastructure is equally robust. Contactless payments work virtually everywhere in Lisbon and Porto, with good coverage in smaller cities. The Multibanco network (Portugal's national ATM system) accepts most international cards, though some digital banks may charge withdrawal fees.

MB Way deserves special mention as Portugal's homegrown mobile payment solution. It allows instant transfers between phone numbers and QR code payments at participating merchants. Most residents use it regularly, and many digital banks can integrate with the system., accounting for up to 45% of e-commerce transactions. Most residents use it regularly, and many digital banks can integrate with the system.

One practical consideration: while urban areas have excellent digital payment acceptance, some rural areas and traditional establishments still prefer cash or physical card payments. It's worth carrying some cash for markets, small cafes, or when traveling outside major cities.

The security infrastructure is also strong, with most mobile banking apps supporting biometric login and two-factor authentication. Portuguese banks use mobile banking for strong customer authentication under EU regulations, making your phone an essential part of the security process.

Which Digital Banks Work Best in Portugal for Individuals and Expats

The digital banking landscape in Portugal offers three main categories of providers, each with distinct advantages depending on your situation and needs.

Portuguese banks with strong digital platforms include Millennium BCP, Caixa Geral de Depf3sitos, and ActivoBank. These offer the advantage of local presence, Portuguese customer support, and seamless integration with local systems like MB Way and direct debits. They're often the preferred choice for long-term residents who want a primary banking relationship in Portugal.

Portuguese digital-only banks such as Banco CTT provide modern interfaces and competitive fees while maintaining local regulatory oversight. They often combine the convenience of app-based banking with the credibility that comes from Portuguese banking licenses.

International digital banks like Revolut, N26, Wise, and Starling are popular with expats and digital nomads. They offer multi-currency capabilities, excellent English support, and the ability to manage finances across multiple countries from a single app.

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The key factors expats typically prioritize include transparent fee structures, responsive English-language support, easy remote onboarding, and compatibility with both Portuguese systems (like MB Way) and their home country banking needs.

"I started with Revolut when I moved to Porto, but added a Millennium BCP account after six months," shares James, a software developer from London. "Revolut handles my day-to-day spending and international transfers perfectly, but having the Portuguese account made dealing with my landlord and the tax office much smoother."

For most expats, a combination approach works well: an international digital bank for flexibility and travel, paired with a Portuguese account for local obligations and official matters.

How to Open a Digital Bank Account in Portugal as a Non-Resident

Opening a digital bank account in Portugal as a non-resident involves two main pathways, each with different requirements and timelines.

Route 1: Portuguese bank with digital onboarding Most major Portuguese banks now offer online account opening, though some may require a brief branch visit for final verification. You'll typically need:

Route 2: International digital bank with EU operations Banks like Revolut, N26, or Wise often have simpler onboarding processes that don't require a NIF initially. The process typically involves:

The NIF (Nfamero de Identificae7e3o Fiscal) deserves special attention. This Portuguese tax number is required for most official transactions including tax filings, property rentals, and utility contracts. While not always required to open a bank account, having one significantly simplifies life in Portugal.

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The step-by-step process for most digital providers follows this pattern:

For visitors planning to become residents, starting with an international digital bank can provide immediate functionality while you sort out Portuguese documentation for a local account later.

Banking in Portugal for Foreigners and How It Compares to Other European Markets

Portugal's banking environment for foreigners sits comfortably within European norms while offering some distinct advantages. The country's EU membership means familiar frameworks around deposit protection, SEPA transfers, and regulatory oversight that work consistently across the eurozone.

What feels familiar: Euro accounts, low-cost SEPA transfers, widespread card acceptance, and strong consumer protection laws mirror what you'd find in Spain, France, or Germany. The documentation requirements for account opening are also standard EU practice.

What's distinctly Portuguese: The NIF system is more central to daily life than tax numbers in some other EU countries. MB Way's popularity means mobile payments are more embedded in local culture than in markets where banking apps dominate. The Multibanco ATM network is also uniquely comprehensive.

Compared to other major European markets:

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Many foreigners adopt a hybrid approach: maintaining their home country banking for international needs while opening a Portuguese account for local obligations. This strategy works particularly well because SEPA makes euro transfers between EU accounts fast and inexpensive.

Portuguese landlords and utility companies are generally flexible about accepting payments from EU bank accounts, though some prefer Portuguese accounts for direct debits. Government services and tax payments typically require Portuguese banking details for efficiency.

"Moving from Berlin to Lisbon, I was surprised how much more straightforward the banking was," notes Maria, a UX designer. "The Portuguese banks seemed more welcoming to foreigners, and the digital infrastructure felt more modern than what I'd experienced in Germany."

The regulatory environment is also foreigner-friendly, with clear rules about non-resident accounts and transparent fee structures that avoid the complexity sometimes found in larger European banking markets.

Fees, Limits and Currency Exchange When Using Digital Banks in Portugal

Understanding the fee structure for digital banking in Portugal can help you avoid unexpected costs and choose the right combination of providers for your needs.

Common fee categories include monthly account maintenance (often waived for digital banks), transaction fees for certain payment types, foreign exchange margins when converting currencies, and ATM withdrawal charges. Portuguese banks typically charge 822-5 for international ATM withdrawals, while some digital banks offer free withdrawals up to monthly limits.

SEPA transfers within the eurozone are typically free or very low cost (under 821), making it inexpensive to move money between Portugal and other EU countries. Non-euro transfers or SWIFT payments to countries outside SEPA can be significantly more expensive and slower.Portugal processed approximately 353 million SEPA Credit Transfers in 2022, demonstrating the heavy reliance on this payment mechanism. Non-euro transfers or SWIFT payments to countries outside SEPA can be significantly more expensive and slower.

Currency exchange becomes relevant if you're receiving income in non-euro currencies. Traditional Portuguese banks often apply margins of 2-4% above the interbank rate, while specialized digital banks like Wise typically offer rates within 0.5% of the mid-market rate.

Limits and restrictions vary significantly between providers:

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For companies managing payroll, watch for bulk payment fees, transfer timing (same-day vs. next-day processing), and any limits on the number of beneficiaries you can pay simultaneously.

Key questions to ask providers before committing:

For tourists and short-term visitors, be particularly careful about dynamic currency conversion at ATMs and point-of-sale terminals. Always choose to be charged in euros rather than your home currency to avoid poor exchange rates.

How Safe and Regulated Are Digital Banks and Portugal Banks

The safety and regulation of digital banking in Portugal depends largely on where your chosen bank is licensed and which deposit protection scheme covers your funds.

Portuguese banks are supervised by Banco de Portugal and covered by the Portuguese deposit guarantee scheme, which protects eligible deposits up to 82100,000 per depositor per bank. This includes both traditional banks and Portuguese digital-only providers.

EU-licensed digital banks operating in Portugal (such as those licensed in Germany, Lithuania, or Ireland) are supervised by their home country regulators but can operate across the EU under passporting rules. Your deposits are protected by the deposit guarantee scheme of the licensing country, not Portugal.

E-money institutions offer a different level of protection. They're regulated for payment services but don't take deposits in the traditional banking sense. Instead, they typically hold customer funds in segregated accounts at licensed banks.

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Security features across digital banking providers typically include two-factor authentication, biometric login options, real-time transaction alerts, and the ability to freeze cards instantly through mobile apps. Portuguese banks use mobile banking for strong customer authentication under EU Payment Services Directive requirements.

For companies in regulated sectors (financial services, healthcare, defense), expect higher scrutiny from auditors and regulators regarding your banking arrangements. Document your rationale for using specific providers and ensure you can demonstrate adequate controls and oversight.

"As CFO of a fintech, I need to be able to explain our banking choices to regulators," explains David, whose company operates across five EU countries. "We use a mix of local banks and EU digital providers, but everything has to be documented with clear risk assessments and compliance controls."

The practical security advice remains consistent: enable all available security features, monitor accounts regularly, and understand exactly which regulatory scheme protects your funds. For significant amounts, consider spreading deposits across multiple institutions to stay within protection limits.

Using Digital Banking in Portugal for Mid-Market Company Payroll and Expenses

Mid-market companies (typically 200-2,000 employees) can often run effective payroll and expense operations through digital banking platforms, though the approach requires more strategic consideration than individual banking needs.

Payroll requirements for growing companies include reliable SEPA transfer capabilities, bulk payment file processing, detailed reconciliation reporting, and integration with payroll software. Many Portuguese banks and EU digital providers can handle these needs effectively, though some payroll service providers may prefer working with established Portuguese business accounts.

Employee payment flexibility is generally excellent. Portuguese employees can typically receive salaries into any EU bank account with an IBAN, whether that's a traditional Portuguese bank, a digital-only provider, or an international digital bank. The key is ensuring reliable SEPA processing and clear audit trails.

Expense management through digital banking often works well for distributed teams. Company cards from digital providers can offer real-time spending controls, automated receipt capture, and detailed categorization for accounting purposes.

Key considerations for Finance leaders evaluating digital banking for payroll:

The strategic question often isn't whether digital banking can handle the technical requirements (it usually can), but whether it fits your broader European employment strategy and regulatory environment.

"We run payroll for 300 people across six European countries through a combination of local banks and a pan-EU digital platform," shares Lisa, VP People at a SaaS company. "The key was finding one approach that could scale consistently rather than managing six different banking relationships."

For companies expanding across Europe, aligning your banking approach with your employment model decisions (contractors vs. EOR vs. owned entities) can prevent costly restructuring later as you scale.

Common Banking Pitfalls for Foreign Companies Hiring in Portugal

Companies expanding into Portugal often encounter predictable banking challenges that can delay hiring, complicate compliance, or create unnecessary operational overhead.

Key pitfalls to watch for:

These issues frequently surface in advisory work with scaling companies. The pattern is usually the same: what worked for the first few hires becomes problematic as headcount grows and regulatory expectations increase.

Practical prevention strategies:

The regulatory environment in Portugal is generally business-friendly, but it expects proper documentation and clear employment structures. Having the right banking infrastructure in place supports these expectations rather than creating additional compliance burden.

Digital Banking in Portugal for Companies Above 50 Employees Expanding Across Europe

As companies scale beyond 50 employees and expand across multiple European markets, banking strategy becomes increasingly important for operational efficiency and compliance management.

Early-stage approach: A single digital banking platform can often handle initial hiring across several European countries, providing centralized treasury management and simplified reporting. This works well when you're managing contractors or using EOR services that don't require local business accounts.

Scaling considerations: By 200-2,000 employees, most companies need to align banking infrastructure with their entity structure, payroll providers, and audit requirements. This often means transitioning from purely digital solutions to a mix of local business accounts and centralized digital platforms.

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Trade-offs between centralized and localized banking:

Centralized digital banking offers simplified treasury management, consistent reporting across countries, and reduced operational complexity. However, it may limit local payment method options and can complicate entity establishment or regulatory compliance in some markets.

Decentralized local banking provides full local integration, easier regulatory compliance, and better relationships with local authorities. But it increases operational overhead, complicates cash management, and can create inconsistent processes across markets.

Critical questions for CFOs as headcount increases:

The key insight is that banking infrastructure should evolve intentionally with your employment strategy, not by accident. Companies that plan these transitions tend to avoid the costly migrations that come from outgrowing their initial banking choices.

How Portuguese Banking Choices Affect a European Hiring and Entity Strategy

Banking decisions in Portugal don't exist in isolation - they're part of a broader European employment and entity strategy that affects compliance, costs, and operational complexity across your entire footprint.

Employment model implications: Your banking needs vary significantly depending on whether you're using contractors, EOR arrangements, or owned entities in Portugal. Contractors require lighter banking infrastructure, EOR reduces the need for local business accounts, but owned entities typically require Portuguese business banking relationships.

Entity establishment timing: Many companies delay opening Portuguese business accounts, not realizing this can become the bottleneck for entity activation and transitioning employees off EOR arrangements. Portuguese entities generally need local banking relationships for share capital deposits, tax payments, and payroll processing.

European hub considerations: If you're planning Portugal as part of a broader European strategy (perhaps alongside Spain, France, or the Netherlands), your banking choices should support cross-border treasury management while meeting local compliance requirements.

Staged evolution timeline:

The strategic advantage comes from coordinating these decisions rather than handling them reactively. Banking infrastructure often has the longest lead times, so planning it alongside entity and employment model transitions can prevent delays in scaling your Portuguese operations.

"We learned the hard way that banking was the constraint on our European expansion," explains Tom, Head of Operations at a cybersecurity company. "Now we start the banking process as soon as we decide to enter a new market, not when we need to pay the first employee."

This coordination becomes particularly important when you're managing employment model transitions. Moving employees from contractor status to EOR to local entity employment can be seamless from an HR perspective, but requires banking infrastructure that supports each stage without creating compliance gaps.

When Your Company Should Still Use a Traditional Portuguese Bank Account

Despite the convenience of digital banking, certain scenarios make traditional Portuguese bank accounts the more practical choice for companies operating in Portugal.

Clear triggers for traditional banking:

The comfort factor shouldn't be underestimated. Portuguese authorities, large suppliers, and auditors often prefer working with well-known local banks. This can smooth interactions around contract negotiations, compliance reviews, and dispute resolution.

Branch relationship value becomes apparent when dealing with complex issues like signatory changes, large transaction approvals, or regulatory inquiries. Having a relationship manager who understands your business can resolve problems that might take weeks through digital-only channels.

Common hybrid model: Many successful companies use traditional Portuguese banks for core operations (payroll, taxes, major suppliers) while maintaining digital banks for expenses, travel, and treasury management. This approach combines compliance confidence with operational flexibility.

Decision triggers to consider:

"We started with Revolut for everything, but opened a Millennium BCP business account when we established our Portuguese subsidiary," shares Rachel, CFO of a logistics company. "The local account made entity management and tax compliance much more straightforward, while we kept the digital bank for day-to-day expenses."

The key is recognizing that traditional doesn't mean non-digital. Portuguese banks now offer sophisticated online and mobile banking experiences - you're choosing local presence and regulatory relationships, not giving up modern banking features.

How Teamed Can Help You Design a Banking and Employment Strategy for Portugal and Europe

Teamed doesn't sell banking products, which means our guidance on Portuguese banking strategy comes without vendor bias. Instead, we help HR and Finance leaders align banking decisions with employment models and compliance requirements across Portugal and 180+ other countries.

Independent advisory approach: We assess whether digital-only banking setups fit your risk profile, sector requirements, and headcount projections. When traditional Portuguese business accounts make more sense, we explain why and help you understand the timing and documentation requirements.

Employment model coordination: Our expertise lies in guiding transitions from contractors to EOR to owned entities in Portugal, ensuring banking infrastructure supports each stage. This prevents the common scenario where banking becomes the bottleneck for employment model evolution.

European strategy integration: Portugal is often part of broader European expansion plans. We help companies understand how Portuguese banking choices affect operations in Spain, France, the Netherlands, and other key markets, ensuring decisions support rather than complicate your multi-country strategy.

Regulatory expertise: Our in-market legal teams across Europe (including Portugal) provide ongoing monitoring of employment and compliance requirements. This human expertise, supported by AI-driven regulatory tracking, ensures banking recommendations align with current and anticipated regulatory expectations.

Strategic outcomes we support:

For mid-market companies expanding across Europe, banking strategy shouldn't be an afterthought to employment decisions. The companies that get this right treat banking infrastructure as part of their broader European employment strategy, not a separate operational concern.

Talk to the experts to discuss how your Portuguese banking choices can support rather than complicate your European expansion plans.

FAQs about Digital Banking in Portugal

Can I keep using a non-Portuguese digital bank account after becoming tax resident in Portugal?

Often yes, particularly if you have a euro account with an EU IBAN. Portuguese tax authorities generally accept payments from EU bank accounts, though you should verify that your employer and any direct debit arrangements (utilities, insurance) can work with your chosen bank. Some official processes may be easier with a Portuguese account.

Will Portuguese landlords and visa authorities accept payments from digital-only banks?

Many Portuguese landlords and service providers readily accept payments from recognized EU digital banks, especially for rent and deposits. However, some may prefer or require Portuguese bank accounts for direct debits or ongoing payments. It's worth checking requirements upfront and being prepared to open a local account if needed.

Can a UK or US mid-market company pay all Portuguese employees into foreign digital banks?

Technically feasible via SEPA transfers for euro payments, but you should confirm that your payroll provider supports this approach and that employees' chosen banks can reliably receive salary payments. Portuguese compliance expectations and audit requirements may also favor more traditional banking arrangements for larger employee populations.

How is my money protected if my digital bank is licensed outside Portugal?

Your deposits are protected by the deposit guarantee scheme of the country where your bank is licensed, not Portugal's scheme. For example, if you use a German-licensed digital bank, German deposit protection applies. Check your bank's regulatory status and confirm the coverage limits and protection mechanisms.

Do regulated industries in Portugal face extra rules when using digital-only banking?

Yes, companies in financial services, healthcare, defense, and other regulated sectors often face stricter expectations from regulators and auditors regarding banking arrangements. You may need to document your rationale for using specific providers and demonstrate adequate risk management controls. Consider seeking specialist compliance advice if you're unsure.

How does digital banking interact with EOR and entity decisions when hiring in Portugal?

EOR arrangements can reduce your immediate need for Portuguese business banking since the EOR provider handles local payroll and compliance. However, if you plan to establish a Portuguese entity later, you'll typically need local business banking relationships. Planning this transition early can prevent delays in moving employees from EOR to your own entity.

What is mid-market?

Mid-market typically refers to companies with 200-2,000 employees or roughly a310 million to a31 billion in annual revenue. These companies face unique challenges because they're large enough to need sophisticated employment and banking strategies but often lack the dedicated resources that enterprise companies have for managing global operations.or